GBP/USD continues to slide after breaching key support levels, with downside momentum intact and limited signs of recovery ahead, Société Générale’s FX analysts note.
Deeply negative MACD signals ongoing bearish momentum
“GBP/USD gave up the 200-DMA last month and breached the lower limit of its consolidation (1.3140) resulting in extension of decline. It is approaching projections of 1.2940/1.2920, which could be an interim support.”
“Daily MACD is within deep negative territory highlighting a stretched decline, however signals of a meaningful rebound are not yet visible. The moving average around 1.3250 may cap upside. Inability to overcome this hurdle can result in persistence of down move.”